Oil prices were up by 7 per cent on Wednesday, with Brent approaching $120 a barrel on supply concerns amid the standoff between the US and Iran.
The market is assessing new statements by US President Donald Trump, who on his Truth Social platform threatened Iran to “get smart soon” and accused authorities in Tehran of failing to “get their act together”.
He also said that there would be “no more Mr Nice Guy” in negotiations.
The Wall Street Journal reported that Washington might extend its blockade of Iranian ports, aimed at forcing Tehran to agree to terms.
Brent, the benchmark for two thirds of the world's oil, was up 7.13 per cent to $119.20 a barrel as of 8.08pm UAE time on Wednesday. West Texas Intermediate, the gauge that tracks US crude, added 6.98 per cent to reach $106.90 a barrel.
Crude prices this week have already exceeded the 16 per cent weekly surge posted on Friday, with Brent having jumped by more than 17 per cent, while WTI has risen by 11 per cent.
Since the war broke out on February 28, Brent has risen by 64 per cent, while WTI has leapt by 60 per cent. So far this year, Brent and WTI have surged by about 96 per cent and 86 per cent, respectively.
Meanwhile, France's TotalEnergies will not return to the Strait of Hormuz until the situation there has stabilised, chief executive Patrick Pouyanne said after the company reported its first-quarter results on Wednesday.
The company reportedly has nine vessels stuck in the strait.
“We will wait for a real stabilisation in the Strait of Hormuz before restarting operations. Before the war you had 50 oil tankers moving out of the Gulf every day,” Mr Pouyanne said.
He also expects Total's North Field East gas expansion in Qatar to be delayed by up to two months.
In the longer term, the UAE's exit from Opec this week is also likely to affect the oil market, analysts have said.
The Emirates' withdrawal from the group, effective from Friday, represents “the most significant fracture in the organisation's 66-year history and increases the risk of oversupply weakening prices”, Wood Mackenzie said in a report.
Simon Flowers, chairman and chief analyst at Wood Mackenzie, said that “the UAE's departure from Opec will have minimal impact on market fundamentals in 2026, even if the Strait of Hormuz reopens”.
“Gulf countries, including the UAE, will take months to return to prewar production volumes. Beyond this year, losing the UAE will compound Opec's challenge to balance the market and increase the risk of oversupply weakening prices,” he added
